High demand is considered positive news for most players in any market; however, for small operators of flexible office spaces, that is not the case.
When demand rises, so do rents, and according to real estate service provider, Workthere, small operators cannot cope well with such a situation.
“Smaller operators have been reducing their real estate footprint in response to rising rents,” Ashley Swan, Executive Director of Commercial Leasing at Savills, told Singapore Business Review.
Swan added that, unlike larger operators, small brands are unable to sacrifice some probability to offer incentives such as rent-free months to spur sales.
With competition in the market expected to further tighten in 2023, Swan said smaller operators will likely be acquired, and the market will be dominated by larger brands.
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